Who is a mortgagee in a real estate transaction?

In a real estate transaction, the mortgagee is specifically recognized as the lender financing the purchase. This is the party that provides the borrower with the funds necessary to buy the property, secured by a mortgage against the property itself. In this role, the mortgagee holds a legal interest in the property, ensuring that if the borrower defaults on the loan, the mortgagee has the right to foreclose on the property to recover the outstanding balance of the loan.

The other roles in a mortgage transaction hold different definitions. The party who takes out a mortgage, often referred to as the borrower or mortgagor, is not the mortgagee. The owner of the property may or may not be the one borrowing the money, and the title insurer is primarily responsible for protecting against defects in the title rather than having a financial stake in the mortgage itself. Thus, identifying the mortgagee as the lender financing the purchase is essential for understanding the dynamics of real estate financing.